Not unexpectedly, troubled electronics retailer Circuit City has filed for Chapter 11 bankruptcy protection, according to Bloomberg:
The Richmond-based company, founded in 1949... has lost more than $5 billion in stock-market value in two years. Circuit City plans to stay in business while it comes up with a plan to restructure...
Concerns among vendors that Circuit City wouldn't be able to pay for the merchandise it sells "escalated considerably'' in the past week, the company said in the filing.
Following last week's news that Circuit City would close more than 150 underperforming store, the chain will go forward with 566 locations in the United States.
Circuit City is the nation's second-largest electronics retailer and currently has between 5-10% of the video game market.
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Not unexpected, but a buddy of mine won't be thrilled. He works for "The Source", which CC owns in Canada (used to be Radio Shack, but oddly enough, Radio Shack didn't own the Canadian outlets... Intertan did, and when it bought CC, it had to change the name because in the US it became Radio Shack's competitor...)
-- If your wiimote goes snicker-snack, check your wrist-strap...
Is it wrong that the first thing that went threw my head when I heard this on the radio was "Firesale!"
Yeah, that would be nice, but they are using the same CompUSA liquidator for the 155 closing stores. That means that everything will be marked up 50% invisibly and then they will hold a 30% off sale.
E. Zachary Knight
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Isn't that why CompUSA went under anyway?
Hunting the shadows of the troubled dreams.
I wonder, when CC's history is looked at, how much divx played a part in their eventual collapse. It seems like they never truely recovered from that mess and have been slowly sliding downhill since.
I'm pretty sure Best Buy also played a major role in hurting them for popularity. You can probably call it customer relations too. I may give them a try again, to take advantage of the low prices.
I'm pretty sure fireing 90% of the competent retail staff was part of it too.
Yeah, Fry's is awsome. Great service and I can get a question or two answered if I'm not exactly sure what I need/want.
There are like 4 of them in my area (Dallas/Fort Worth)
So, does that mean, by default, that the Source is bankrupt and will be closing as well?
Ouch no love.
~Weatherlight~
I still see ads for it, but not so much on TV and more on one website (Snafu-comics.com)
weird to see it go though...
Dammit, and I was thinking about applying for a job at CC.
Oh well, I can hop on the train to go to Best Buy.
"We may be human, but we're still animals" -Steve Vai (World's greatest guitarist!)